artisan2BDLive reports that the Davis Tax Committee says SA’s skills development framework needs to be overhauled because it places a financial and administrative burden on the small business sector.  By contrast, large enterprises enjoy an advantage.  

In its final report on the small and medium enterprise (SME) sector, the committee recommended that the government institute reform so that small enterprises can obtain funding without having to implement costly skills and training plans, and table annual training reports.  Under the current system, small enterprises that have annual employment costs exceeding R500,000 are required to pay a skills development levy of 1% of payroll to the relevant Seta.  They can claim back a portion of these funds based on their proven training spend, but for the average small enterprise the compliance costs of claiming from the Seta would most likely exceed the amount recovered.  Many small businesses paid a levy with little or no prospect of obtaining any direct benefit.


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